Last updated on March 17th, 2020 at 07:49 am
A joint report by The World Travel & Tourism Council India Initiative and HVS states that by 2020, the Indian hospitality sector will need 180,000 additional rooms, $25.5 billion for constructing these rooms and about 211,000 people to operate them due to growing demand from domestic and foreign travellers. While the statistics spell an optimistic outlook for the sector, there have been lines of worry shadowing it.
The industry is witnessing a cash crunch situation. Sourcing capital for constructing new properties, building inventory, upgrades and routine maintenance is getting increasingly difficult, especially for the small and independent hotels. The cost of land has skyrocketed in the past few years, making the availability of a cheap land parcel scarce. Similarly, the rising utility costs have also added to the woes.
Moreover, the demonetization drive by the government has disrupted the transactions and added to the chaos in the hotel industry. Hotels accept a lot of cash payments and their inability to provide alternate payment modes to customers have led to revenues heading south. At the same time, they are not able to pay for construction and maintenance since real estate contractors and labour prefer cash transactions.
In such a scenario, hotels are now turning to investors for financial support. However, attracting investors isn’t an easy task. Investors have high yield expectations and hence would want to see if there is any potential in loosening their purse strings for your hotel. Apart from the fact that how attractive your property is in terms of location, look, amenities and service standards, they also want to know what are the past & current revenue streams, what the booking forecast looks like and if there are any new revenue-generating channels.
In simple words, investors expect you to do some number-crunching to provide them with solid data that will prove why your hotel should qualify for funds.
Your hotel data can not only pull investors, but it can be useful to you in several other ways in improving the quality of your hotel:
- You can see revenue flow, average daily rate (ADR), booking lead time and cancellations from all channels. This will give you insight into which channel is generating the highest revenue & which isn’t and why. Accordingly, you can rethink your revenue and marketing strategy.
- You can track patterns in guest activity – when they prefer to take a holiday, do they book a couple or a family room, which mode of payment they prefer, etc.
- You can identify the lifetime value of guests – do they return to your hotel on their next visit, did they stay longer or spent more than other guests?
- You can manage your online reputation better. You may have employed the best technology in your hotel or offer competitive rates, but if your services are not satisfactory, the guests will leave unhappy. They will put negative mentions about your hotel online. When potential guests read these reviews, they will not like to book a stay with you. This could be detrimental to your image as well as pull your revenues down. However, when you have data which can help you to draw insights from guest sentiments and reviews, you can improve your brand image and service standards to deliver the best guest experiences.
In spite of the benefits that the data can provide, most hotels fail to leverage it. This is mainly due to the lack of intelligent data tools.
Djubo understands the growing importance of hotel data in improving hotel quality and hence, provides intelligent solutions through its cloud-based 360 hotel sales platform. It maximizes your hotel revenues, streamlines room distribution and reduces operating costs, all from a single interface.
Djubo’s hotel analytics suite gives you real-time insight into the customers’ behaviour and booking patterns to measure your performance, and develop predictable and robust revenue strategies.
Recently, Djubo has partnered with Indifi Technologies, an enabler for SME funding in India to make unsecured capital loans up to 50 lakhs within 3 business days available to more than 1400 hotels that are associated with Djubo. All that these hotels have to do is to share their revenue data from their DJUBO systems with Indifi, to act as proof of creditworthiness. This capital will help these hotels to invest in modern amenities, service quality and operations, thereby improving guest delight. This will eventually result in better room realization, occupancy & profitability over a period of time.
Djubo also offers a powerful guest intelligence tool called StarSight to build your hotel’s brand. It consolidates all online review sources for your hotels onto a single dashboard, and analyses both quantitative & qualitative data to bring deeper insights into your hotel’s online reputation on each sales channel. StarSight can help you manage your online reputation, respond faster to guests, minimize the impact of negative reviews and identify service improvement areas & marketable strengths.
Your hotel data is a potent mine of information, which if leveraged rightly and timely, can give you an upper hand in the market. It is your doorway to making your guests and investors happy!